Quality Improvement Essay: Telstra Corporation Limited's Journey

Question one
Discuss the quality journey of you organisation explaining the imperatives driving the organisation to improve its quality position.
Answers to question one:. Quality Imperatives. Key words: Economic imperative, Social imperative, Environmental imperative.
Question two
Discuss the strategic targets set, both long term and competitive and explain how they intend to achieve these goals
Answer to question two: Strategic importance of Quality. Key words: Operations, administration, Strategy and long term goals, normative decisions.
Question three
Explain the quality philosophies adopted by the organisation and the way they have communicated them to their employees
Answer to question three. Quality philosophies. Key words: Deming, Crosby, other gurus, communication of philosophies.
Question four
Explain how they made use of the various quality tools, measurements, or benchmarks to achieve their goals.
Answer to question four. Quality Tools. Key words: Statistical process control, benchmarking, house of quality, Pareto charts, Baldrige awards, six sigma, etc.
Question five
Discuss the current or proposed management system used to effectively manage the holistic quality nature of the organisation.
Answer to question five: Discuss the role of strategic alliances and the methods of managing quality. Key words; Supplier development, TQM, ISO9000, quality assurance, skill based quality management.
Question six
Discuss any deficiency in the organisation's structure, human resource management or quality philosophy that has influenced its ability to be a quality organisation, and give any recommendations for change. 

The Company and its Position in the Telecom Industry

In present competitive environment, organizations are increasingly emphasizing over the quality of goods, which they offer (Bayo-Moriones, Bello-Pintado and Merino-Diaz-de-Cerio 2011). Improving as well as maintaining the excellent quality is considered as a competitive benefit, which companies can quickly capitalize for the purpose of keeping and expanding the market (Anderson and Rungtusanatham 1994). The principal objective of the report is to analyse the companies, which has followed the journey of quality improvement and how the same is done. The company selected for this report is Telstra Corporation Limited.

Telstra Corporation Limited headquarters are located in Australia, which works with the IT services. Telstra customers are located at both local and global market, having a strong position in the telecom industry of Australia (Barrile 2009). The headquarters of the company is situated in Melbourne, and most of its operations are undertaken in Australia. In the year 2013, the workforce of the company was 37721. The products offered by Telstra holds the high appeal to the leading players in the market. Even the brand of Telstra is high, and that’s the reason they can easily penetrate in new market niches in an efficient manner (Barrile 2009). The position of the company has also improved by the bundling strategy, which places focus on the right quality services like Pay TV, mobile voice, fixed active voice services, and fixed line broadband (Barrile 2009). At present, the position, which is enjoyed by Telstra is only achieved through its steps were taken towards improving product quality (Barrile 2009).

Question one

Discuss the quality journey of you organization explaining the imperatives driving the organization to improve its quality position.

Quality improvements taken place at Telstra is highly driven by the desire for maintaining the dominant control of market within the telecom industry in Australia and other places (Telstra Corporation Limited 2014). The quality strategy is created through the three top pillars, such as social, economic and environmental imperatives (Bayo-Moriones, Bello-Pintado and Merino-Diaz-de-Cerio 2011). Every imperative is briefly explained below:

The economic imperative is mainly driven force for the purpose of quality improvement at Telstra (Bayo-Moriones, Bello-Pintado and Merino-Diaz-de-Cerio 2011). The quest of the company for the quality is caused by the requirement to provide excellent quality services, and that too at the competitive cost for earning a good profit (Bayo-Moriones, Bello-Pintado and Merino-Diaz-de-Cerio 2011). In this context, efforts are made to an organization for improving the efficiency of both the operational procedure and processes. In result of that, the economic performance of Telstra is enhancing importantly over the period. In 2011, financial year, for instance, the revenue of the company was around A$25, 304 million, having the profit of around A$3231 million (Bayo-Moriones, Bello-Pintado and Merino-Diaz-de-Cerio 2011). In result of the quality improvement, the revenue and profits of the company are steadily improving. By 2013 financial year, the revenue has reached to around a$25678 million, and the profits have increased up to a$3813 million (Bayo-Moriones, Bello-Pintado and Merino-Diaz-de-Cerio 2011).

Question 1: Discuss the Quality Journey of the Organization

As per Beckford (2002), the social imperative is highly driven by the quality improvement at Telstra, which revolve around creating value for various stakeholders like community, government employees, suppliers, consumers and many others (Beckford 2002). Along with this, the quality improvement of the company includes resource usage and its items for the advantage of the community, in which it work on (Beckford 2002).

In the context of environmental imperative, the quality improvement of Telstra journey has been placed on the problem of caring the resources, as well as protecting the environment (Bayo-Moriones, Bello-Pintado and Merino-Diaz-de-Cerio 2011). Mainly, the company has taken efforts, for making sure that it attain the efficient consumption of energy with the minimized greenhouse gas emission (Bayo-Moriones, Bello-Pintado and Merino-Diaz-de-Cerio 2011). The organization has become quite cautious related to radio frequency radiation, which is used in the sector of telecommunication. Along with this, the team has created policies, which are intended towards decreasing the resources like paper and water (Bayo-Moriones, Bello-Pintado and Merino-Diaz-de-Cerio 2011).

Question two

Discuss the strategic targets set, both long-term and competitive and explain how they intend to achieve these goals

In the business organization, quality improvement is referred as strategic importance. Once the team is consistently providing the right quality of the product, it attains the competitive benefit over their rivals (Bayo-Moriones, Bello-Pintado and Merino-Diaz-de-Cerio 2011). The strategic target of Telstra in the context of quality improvement includes the problems that touch the administration, operations, long-term goals, strategy and normative decisions (Brown and Wiele 1996). In the context of activities, the organization intends towards building the new business growth that pegged towards network services, it also intends towards the Asian operations as well as venture towards e-health and various opportunities for the long term expansion in the areas like, digital media and international applications (Brown and Wiele 1996). It also intends towards value through the core, where the emphasis is placed on revenue and growth of customers, network superiority and high productivity by business simplification (Brown and Wiele 1996).

As per Telstra (2013), it aims towards attaining the quality improvement by administrative actions, which rely on the company’s operational strategy. In the context of administration, the organization undertook the portfolio changes, which emphasize over enhancing quality (Komatsu puts IT into Telstra’s cloud 2010). These changes include business creation, which is also referred to global enterprise and services that responsible for global network application service, general applications, platforms, and Telstra Ventures (Brown and Wiele 1996). The review of Telstra for its long-term strategy aims towards right attention for attaining long-term value. The company also takes normative decisions, which are based on the situations, which create influence over the decisions (Bayo-Moriones, Bello-Pintado and Merino-Diaz-de-Cerio 2011). In such case, departmental heads facilitate the subordinates in the process of decision making, and department head makes decisions, and attempt to consult the particular teams. In special cases, the technical, as well as scientific decisions, are taken, and the leaders often delegate these decision making to the appropriate expert in the concerned area (Brown and Wiele 1996).

Question 2: Discuss the Strategic Targets set by the Organization

Question three

Explain the quality philosophies adopted by the organization and the way they have communicated them to their employees

Telstra strategies for quality improvement is highly guided through various philosophies, which make sure about the services that are delivered to suit as per the needs of the customers (Bayo-Moriones, Bello-Pintado and Merino-Diaz-de-Cerio 2011). The organization is quite keen on getting consistent within the service quality and move more than product costing, as it’s the base for rewarding. All these philosophies are influenced through the Edwards Deming, whose management of quality practices include fourteen components (Bayo-Moriones, Bello-Pintado and Merino-Diaz-de-Cerio 2011). As per Singh, Chua-Ming and Sum (2013), all these components, include creating the improvement in a consistent manner, adopting the unique philosophies, creating massive inspection dependence over the improvement of quality, constant improvement and awarding business more than price tag (Singh, Chua-Ming and Sum 2013).

Apart from Deming, even Telstra other quality guru has also tried to create influence over the quality of the company philosophy (Singh, Chua-Ming and Sum 2013). They have set up fourteen steps program for improving the quality. It is perhaps referred as one that has a high influence on Telstra (Singh, Chua-Ming and Sum 2013). The program includes the commitment of management towards improving quality as the first step and then it is followed by forming a team, which are responsible for completing the task (Singh, Chua-Ming and Sum 2013). The best step for setting up the measurement of quality includes the evaluation of creating appropriate awareness and evaluate quality cost. It also includes a step for taking right actions, which are followed by planning the zero defects and training both supervisor and managers.

Question four

Explain how they made use of the various quality tools, measurements, or benchmarks to achieve their goals.

Some quality tools are made employed by Telstra for enhancing their quality. These tools are, benchmarking, quality house, as well as statistical process control, Pareto charts, six sigma, Australian quality award, and statistical quality control (Singh, Chua-Ming and Sum 2013). The company makes sure that the process of production will be predictable, stable as well as operational at all targeted level (Bayo-Moriones, Bello-Pintado and Merino-Diaz-de-Cerio 2011). On benchmarking, Telstra will undertake the comparisons about the performance metrics as well as a process with the best performing organizations in the global market. The measured variables include quality, cost and time (Singh, Chua-Ming and Sum 2013). Telstra also makes use of the house of quality for exploring the needs of the customers and product capability of the company (Bayo-Moriones, Bello-Pintado and Merino-Diaz-de-Cerio 2011). Statistical process control on the other side is used for ensuring about its elimination of waste and achieve the complete operations (Singh, Chua-Ming and Sum 2013). It is significant to mention that Telstra applies six sigma for enhancing the product quality through exploring as well as eradicating the reason for a defect in the product (Bayo-Moriones, Bello-Pintado and Merino-Diaz-de-Cerio 2011). The organization also ensure about Pareto chart for evaluating the product frequency and cusses for errors (Singh, Chua-Ming and Sum 2013).

Question 3: Explain the Quality Philosophies Adopted by the Organization

Question five

Discuss the current or proposed management system used to manage the holistic quality nature of the organization.

For the purpose of maintaining the comprehensive quality nature of the company ineffective way, Telstra has opted for management system, which focuses on supplier development, strategic alliances, quality assurance, total quality management, skill based quality management, and ISO 9000 compliance (Nair and Prajogo 2009). The organization identifies the significance of holding the strategic alliance for enhancing the service quality. Telstra place high focus over the supplier development for making sure about the reliable as well as best quality inputs (Bayo-Moriones, Bello-Pintado and Merino-Diaz-de-Cerio 2011). For the purpose of guarantee about quality assurance, the organization holds the two face strategy, in which it can purchase the inputs from low-cost countries along with suppliers from the local market (Nair and Prajogo 2009). Telstra globalized ISO 9000 standards and then it went through the process of certification, which even lead towards certification. As per Bendall-Harris (1994), globalization of all these standards has undertaken, for the purpose of satisfying the customers and improving the quality reputation (Bayo-Moriones, Bello-Pintado and Merino-Diaz-de-Cerio 2011). The system of quality management at Telstra emphasize on various areas of an organization and all other activities, which is also known as total quality management (Nair and Prajogo 2009).

Question six

Discuss any deficiency in the organization's structure, human resource management or quality philosophy that has influenced its ability to be a quality organization, and give any recommendations for change.

There is only single aspect related to the organizational structure of Telstra that might have the bearing over the company as the quality company (Bayo-Moriones, Bello-Pintado and Merino-Diaz-de-Cerio 2011). There exist a huge gender imbalance in the context of top-level managerial employees, from thirteen executives of the company, there are only four, who are women (Anderson and Rungtusanatham 1994). The organization might be missing something important idea about quality improvement, which could be brought if there were more women (Anderson and Rungtusanatham 1994). Therefore, it is important for Telstra to restructure the human resource, and make sure about the proportional measurement for both the female and male executives, without even compromising the quality (Anderson and Rungtusanatham 1994).

Conclusion

This report analyses about the Telstra quality improvement from a different viewpoint. Firstly, the quality improvement journey for the company is assessed, in which it is noted that the quality improvement of the business is highly driven by the economic imperative, which aims towards advancing the profits and revenue. The important social aim towards creating the stakeholder's value and imperative environmental goals towards protecting the environment. Strategic targets are also analyzed in the context of new growth opportunities, administrative action, and operations. Quality philosophy of the company is highly influenced through the Crosby and Deming. This report also features the quality tools. This report also discusses the quality management system like supplier development, strategic alliances, quality assurance, total quality management, and ISO 9000 certification.

References

‘Komatsu puts IT into Telstra’s cloud. 2010. Marketwatch: Technology, 9(6), pp. 15-16.

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Anderson, J., and Rungtusanatham, M. 1994. ‘A Theory of Quality Management Underlying the Deming Management Method’. Academy of Management Review, 19(3), pp. 472-509

Barrile, S. 2009. ‘Telstra: The Challenge of Corporate Responsibility’. Busidate, 17(2), pp. 7-9.

Bayo-Moriones, A, Bello-Pintado, A, and Merino-Diaz-de-Cerio, J. 2011. ‘Quality assurance practices in the global supply chain: the effect of supplier localisation’. International Journal of Production Research, 49(1), pp. 255-268.

Beckford, J. 2002. ‘Part two: The quality gurus: Chapter 5: Philip B. Crosby’. Quality Routledge

Bendall-Harris, V. 1994. ‘Customer-focused Re-engineering in Telstra: Corporate Complaints Handling in Australia’. Business Change & Re-Engineering, 2(1), pp. 7-14

Brown, A, and Wiele, T. 1996. ‘Quality management self-assessment in Australia’. Total Quality Management, 7(3), pp. 293-307.

Nair, A, and Prajogo, D. 2009. ‘Internalisation of ISO 9000 standards: the antecedent role of functionalist and institutionalist drivers and performance implications’. International Journal of Production Research, 47, pp. 4545-4568

Singh, P, Chua-Ming, W, and Sum, C. 2013. ‘Deming Management Method: Subjecting Theory to Moderating and Contextual Effects’. Quality Management Journal, 20(3), pp. 41-69.

Telstra, C. 2013. Investor Day. [Online]. Available at: https://www.telstra.interactiveinvestorreports.com [Accessed on: 15^th May 2017].